You may have heard that refinancing an existing mortgage is a good idea, but the question is if it applies to your situation. You would have to go to a reliable mortgage firm in your area to find that out. However, there are generally four benefits from refinancing.
Lower your monthly payments
Refinance rates in Utah are currently down today. For example, the fixed annual rate for a 15-year mortgage refinance is a 2.67% low. You are definitely paying more than that a year with your old mortgage. When you refinance your mortgage right now, you will pay a lower amount every month. This can make a big difference to your short-term money problems.
Lower overall interest
You may think that ditching your old mortgage for a new one means you have to pay more in interest and other fees than if you had just stuck with the old one. While this may be true in some situations, in most instances, you could reduce what you pay overall. You do need to do the math on this. Add up all the refinancing fees and interest, and compare that to what you will pay for the remainder of your old mortgage. If you save something from refinancing, then you should go for it.
Less time to pay off
The beauty of refinancing is you can control how fast you pay off your mortgage. If you are making more money now, or can otherwise pay more, you can shorten your payment period. Shaving even one or two years from your payment period can mean considerable savings in the end.
Fewer money problems
When you refinance your mortgage, you also get access to any equity you may have in your home, says an expert from Mortgagepartner.com. You can use this to get a line of credit you can use to pay for your college or any major expense. You will pay the same rate as your refinance mortgage for your line, which is cost-effective.
Mortgage refinancing is currently popular in Utah because the timing is right. Interest rates are low, and the economy is recovering. However, that can change quickly. You need to act fast to get the full benefits of a refinance Orem. Mortgage refinancing is currently popular in Utah because the timing is right. Interest rates are low, and the economy is recovering. However, that can change very quickly. You need to act fast to get the full benefits of a refinance.